Following its pullback from early-August lows, Gold prices fail to remain strong as buyers await fresh signals of recent risk aversion. The yellow metal bounced off $1,455 on Tuesday as fears of global slowdown unearthed on the back of disappointing activity numbers from the key global economies. Furthermore, investors were also taken aback by Iran’s readiness to have unconditional talks with Saudi Arabia, as reported by the Aljazeera. While the absence of major data is likely to offer a dull trading day, gold traders will seek confirmation of recent risk-off sentiment from the speech of the Federal Reserve Bank of New York President John Williams and early indication of Friday’s Non-farm Payrolls.
As expected, Gold prices rebounded from the support zone near $1456.93 level and climbed towards the $1486.98 resistance level after refraining from extreme oversold conditions. The price is currently trading just above the $1474.99 support level however the momentum is still bearish after the bounce. If the price found support in the current area, we will be focusing on the upside with the $1494.87 resistance level on our watch.
Support: 1474.99/ 1456.93
Resistance: 1486.98/ 1494.87